UK inflation edges lower

Inflation showed a slight drop last month falling to 2.5% in August, from 2.6% the previous month. The decline came as furniture prices, gas and electricity bills and clothing costs rose by less than a year ago.

The consumer price index (CPI) rate of inflation fell to 2.5% in August, from 2.6% the previous month, the Office for National Statistics (ONS) said.

The decline came as utility bill and clothing costs rose by less than a year ago, the ONS said.

But the rising cost of fuel maintained upward pressure on the cost of living and is likely to increase fears that the rate of inflation will not fall as rapidly as hoped by the Bank of England, maintaining the squeeze on struggling households.